2021-10-12 P&E Agenda - Item 10 - Attachment 1 - Social Return on Investment Evaluation

Executive summary
Context of this evaluation
The Peregian Digital Hub (Digital Hub) is a core element and significant capital initiative within the Noosa Shire
Council (Council) economic development strategy (strategy) to diversify the local economy. This is to help
reduce dependence on seasonal sectors of the Noosa economy, such as tourism, and generate new value-
adding business and higher-income jobs.
The purpose-designed Digital Hub is a physical representation of Council’s economic development strategy,
with ~$3m capital invested to create the hub and accelerate the local digital economy.
Following three (3) years of operations and funding, Council commissioned this evaluation to assess whether
the Digital Hub is meeting Council’s economic objectives. A Social Return on Investment (SROI) evaluation was
undertaken to assess the holistic contribution of the Digital Hub to the local economy. The SROI methodology
is used extensively to assess social and economic values, which allocates financial value to benefits which can
be otherwise difficult to calculate.
The SROI was informed through the contribution of the Digital Hub’s three (3) key stakeholder groups:
    •   Subscription members who work from the Digital Hub
    •   Local digital and ‘tech’ professionals who network through Digital Hub events and programs
    •   Students (and their parents/ carers) who participate in Digital Hub initiatives - after school clubs and
        school holiday programs.
Key findings
The Digital Hub is realising Council’s strategy to unite and develop a strong, vibrant and productive digital
community. Consultation with stakeholders directly involved in Digital Hub activities provided detailed data
and anecdote regarding many value-adding economic activities. Following are the key findings attributable to
the Digital Hub in 2020/21:

    •   Creation of 41.5 jobs, valued at: $3,735,000 ($1,867,500 direct attribution to Digital Hub)
    •   Development of numerous new digital products and services valued at: $7,810,000 (direct attribution
        $1,562,000 to Digital Hub)
    •   Intended private capital investment to stimulate business or promote products valued at a minimum
        of: $180,000.

The total SROI value of the Digital Hub – inclusive of the above and other benefits - is calculated to be: $4.8m
for 2020/21.
This is calculated on a conservative basis, meaning the true value is likely to be under-valued. This does not
include the value of capital grants awarded through the Digital Hub (Firetech). This does not allow for COVID-
19 impacts, as these were unable to be accurately estimated, although stakeholders explained impaired
trading conditions.
Working from and accessing markets from Noosa
The digital community is accessing broad markets from their base in the Noosa locality. Trade is taking place
with clients across SEQ, Queensland, Australia and international markets. The digital community is also
confident they can continue to work and grow their business from Noosa.

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